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Last year, Farrer corporation had sales of $1.500.000. variable expenses of $900

ID: 2462358 • Letter: L

Question

Last year, Farrer corporation had sales of $1.500.000. variable expenses of $900. 000 and fixed expenses of $400.00.What would be the dollar sales at the break even $ 1.300,000 $ 1,000,000 $ 1,380,000 $1, 200,000 the contribution margin ratio is sales divided by contribution margin sales divided by fixed expenses sales divided by variable expenses. contribution margin divided by sales the ARB company has two divisions: Electronics and DVD Video Sales electrons has traceable fixed expenses of $146.280 and the 1)BD Video Sales has traceable fixed expenses of $81,765. If ARB Company has a total of $322.490 in fixed expenses what are its common fixed expenses $94,445 $322,490 $228,045 $47,223 margin is the amount of revenue remaining after deducting cost of goods sold fixed costs. variable costs. contra-revenue for Wickham Co., sales is $2,000,000. fixed expenses are $600,000. and the contribution margin ratio is 36% What is required sales in dollars to earn a target net income of $400,000 $1.111,111 $ 1.6666,666 $2.777,778 $5,555,556 hinge Manufacturing's cost of goods sold is $420,000 variable and $240,000 fixed the company' s veiling and administrative expenses arc $300.000 variable and $360,000 fixed. if the company's sales is $1.480.000. what is its contribution margin $160,000 $760,000 $820,000 $880,000

Explanation / Answer

22.

B) $1,000,000

Contribution = $600,000

Contribution ratio= $600,000 / $1,500,000 = 0.40

therefore BEP in dollers = $400,000 /0.40 = $1,000,000

23.

D) Contribution margin devided by sales

24.

A) =$94,445

Common fixed expenses = Total fixed expenses - Traceable fixed expenses

= $322,490 - ($146,280 + $81,765) =$94,445

25.

C) Variable costs

26.

C) $2,777,778

Sales required to earn targeted profit = $600,000 +$400,000 /0.36 = $2777,778

27.

B) $760,000